News, Palestinian affairs

Palestinian premier under pressure to rescind tax hike meant to end reliance on foreign aid

Palestinian Authority Prime Minister Salam Fayyad.

In the West Bank, businessmen have been pushing for Palestinian Prime Minister Salam Fayyad to annul the income tax increase meant to make Palestinians less dependant of foreign aid for the government’s daily operations. Fayyad said that in 2011, the government received 25% less than it needed from foreign aid. He also argued that the increase in tax is aimed only to those with high income.Fayyad had promised donor countries that by 2013, Palestinians would no longer need foreign aid. To show their discontent, businessmen placed an ad in a newspaper asking the Prime Minister to downsize the increase of the tax rate calling it an “unacceptable burden”.

Associated Press, United States

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